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RESPONSIBLE

sourcing

CORPORATE RESPONSIBILITY

ISSUE REPORT 2015/2016

Hyatt’s multi-billion-dollar supply chain is expansive, encompassing global companies and

local suppliers in over 50 countries in which we operate. The products and services we procure

and consume around the world help us to ensure the comfort and well-being of our guests and

colleagues, while also supporting local economies. We have a responsibility to leverage our

purchasing power to increase the demand for responsible products for our hotels, our guests,

and our communities, and to work with our suppliers and other stakeholders to increase

visibility in our supply chain.

OUR FOCUS

We are committed to working with suppliers and other partners

to drive responsibility in our global supply chain. We believe

that as a global brand we have the ability to influence change.

In 2014, we formalized responsible purchasing goals as part

of our 2020 Environmental Sustainability Vision. Our goals

reflect global targets in areas where we know we have the

ability to drive change through our supply chain. We are also

committed to supporting our local hotel-level efforts, which

tend to be decentralized, and helping them to prioritize

specific products for which more socially and environmentally

sustainable alternatives are available.

In 2015, we made significant advances toward our supply

chain goals by focusing our efforts on data collection and

analysis to define areas of strategic opportunity, piloting

procurement strategies in key product categories, and

working with organizations, such as World Wildlife Fund

(WWF) on sustainable seafood and Avendra 1 on operational

supplies, to directly drive impact through our supply chain.

1 Avendra is the purchasing company we work with in North America.

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HYATT I CORPORATE RESPONSIBILITY ISSUE REPORT 2015/2016


OUR ACTIONS

DRIVING STANDARDS

ALONG OUR SUPPLY CHAIN

To complement our programs and policies that guide our

social and environmental performance, we also give preference

to working with companies that adhere to similar business

principles. Hyatt’s Supplier Code of Conduct sets out the

minimum expectations we have of our suppliers around

compliance, human rights and labor, health and safety, the

environment, and ethics. Additionally, we work with Avendra

to help us assess the sustainability commitments of our North

American suppliers and to communicate the importance of

environmental policies and programs to our value chain.

94%

of Hyatt’s major suppliers and distributors of

operational and food and beverage products

for North American hotels have sustainability

policies in place. North America is our

largest market, and the only one in which

we have centralized contracts, making this

an important milestone.

LEADING THE INDUSTRY

WITH SUSTAINABLE SEAFOOD

By 2030, it is predicted our global population will consume

40 million more metric tons of seafood each year compared

to 2008. This demand will put a huge strain on our oceans,

aquaculture, and labor welfare, increasing the threat of overfishing

and ecological damage, and affecting the communities that rely

on the industry for their livelihoods.

In 2014, Hyatt, in collaboration with WWF, announced

industry-leading goals to help address this global issue, with an

aim of sourcing 50 percent of our global seafood volume from

responsible sources, 15 percent of which will come from Marine

Stewardship Council (MSC) or Aquaculture Stewardship Council

(ASC)-certified sources by 2018. At the same time, we implemented

a ban on shark fin at all restaurants and food and beverage outlets.

Assessing and Improving Seafood Purchasing

In 2015, we completed an audit of our seafood purchasing across

managed, full service hotels globally. This information has been

critical in establishing our strategy across all markets through

2018, including high-priority species and markets where we can

have the greatest impact. For example, in 2015 we initiated the

work to transition shrimp – our second-largest seafood category

– to ASC-certified sources in North America, our largest market.

We also supported Fishery and Aquaculture Improvement Projects

(FIPs and AIPs) in countries such as Vietnam, Peru, and Ecuador

that help fisheries and farms reach MSC/ASC standards. Hyatt is

now listed as an official FIP participant and we are also advocating

sustainable seafood through letters to suppliers and governments

to drive broader action. Finally, we strive to influence the increase

in sustainable seafood supply by communicating our goals to our

suppliers. In particular, we met with Chilean farmers and suppliers

of ASC-certified salmon to discuss opportunities to scale up

sustainable purchasing across Hyatt.

Piloting Sustainable Procurement Strategies

We conducted two in-depth studies with Hyatt

hotels in Hong Kong and India to identify

procurement strategies in challenging markets.

Based on preliminary data, both groups were able

to realize significant progress with sourcing MSC

and ASC products, and as much as one-third of

each region’s seafood by volume is procured from

responsible sources. Each region also plans to

increase this volume in the coming years.

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Driving Local Action

There are many challenges with both identifying and accessing

sustainable seafood, which is why we place a large emphasis

on colleague training and awareness. In 2015, we required

our culinary and purchasing colleagues to go through

comprehensive training materials on sustainable seafood.

Many of our hotels have embraced this opportunity to

be local change agents, including hotels in Asia, where

we have the highest volume of our global seafood

purchases and where access to sustainable supplies

can be more challenging.

Action in Asia

• Grand Hyatt Singapore reduced its total seafood offering

across its restaurants from over 600 seafood products to

less than 100, with a focus on ensuring most of its seafood

is certified by credible third parties. MSC or ASC-certified

seafood alone makes up around 40 percent of the hotel’s

seafood by volume, and its restaurants are MSC and ASC

Chain of Custody Certified. The hotel took the added step

of acquiring a seafood importer’s license to enable its

procurement of sustainable options.

• Grand Hyatt Erawan Bangkok took steps to shift the majority

of its seafood menu offering across its three restaurants to

MSC, ASC, or other third-party-certified sources. Given the

limited options in Thailand, the team found certified farms

and fisheries, negotiated with suppliers to begin bringing

shrimp and oysters from MSC or ASC-certified sources into

the country, and helped other local restaurants source these

sustainable options as well.

• Grand Hyatt Jakarta transitioned the majority of its imported

seafood to products from MSC or ASC-certified sources

during 2015. For local seafood, where certified options aren’t

available, they work with fishermen who use low-impact

line fishing. The hotel rotates its menu specials to reflect the

changing local deliveries.

• Park Hyatt Tokyo became the first hotel in Japan to obtain

an MSC and ASC Chain of Custody Certification, and is

also working with local producers to increase the supply

of MSC and ASC-certified seafood in its market.

FOOD. THOUGHTFULLY

SOURCED. CAREFULLY SERVED.

Beyond seafood, food and beverage represents one of

our most significant spends. Our philosophy is to focus

on healthy and sustainable options that are good for our

guests, for the local communities, and for the planet.

We are proud to be a leader in this effort among hospitality

companies and we were one of the first in our industry

to introduce cage-free eggs, launch comprehensive

sustainable seafood goals, and join the Partnership for a

Healthier America.

Our hotels bring life to this philosophy in many different

ways – from raising bees at Hyatt Regency Mainz, to

building strong relationships with local farms at

Grand Hyatt Goa and growing herbs and vegetables at

Hyatt Regency Hua Hin.

Thoughtful Sourcing in North America

• Cage-free liquid and shell eggs

• Sustainable seafood advancement with WWF

• To-go containers made of compostable or recycled materials

• rBST-free milk

• Grass-fed, hormone and antibiotic-free beef hamburgers

• Polystyrene eliminated from our food and beverage

packaging and cutlery

©

WWF-US/Molly Edmonds

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Providing Locally Sourced, Organic Ingredients

Before opening in late 2015, the culinary team at Park Hyatt Guangzhou

researched options for providing organic and sustainable ingredients in

its restaurants. They found a farm committed to sustainable practices in

commercial agriculture in the Fujian Wuyi mountain range surrounded by

biodiversity. The hotel now works closely with the farm to develop its menus

around seasonal produce to deliver fresh and organic ingredients to guests.

OUR OPERATIONS

We look at opportunities to make a positive impact through our broader

procurement practices and collaboration with suppliers, many of whom

share our commitment to environmental sustainability. For example,

our shampoos and soaps across all of our brands globally are made of

biodegradable formulas packaged in bottles made of recycled plastic.

In North America, we have worked with Ecolab to provide comprehensive

cleaning solutions that increase efficiency, minimize the use of natural

resources, and improve safety – from sourcing to manufacturing, to use

and through disposal. Helping to reduce water and energy use, as well

as packaging waste are a few key ways Ecolab’s sustainable offerings

impact our properties. Green Seal-certified in-room cleaning supplies

are leveraged whenever available, meeting rigorous sustainability criteria

while maintaining the same performance and quality requirements

as traditional, non-green counterparts, all while minimizing our total

environmental impact.

We work closely with Avendra on sustainable purchasing product categories

for our North America market, where our contracting is consolidated.

Our aim is to expand our focus internationally where possible.

SUPPORTING DIVERSITY AND

INCLUSION IN OUR SUPPLY CHAIN

We also believe that we have an opportunity and a responsibility to

ensure that our supply chain reflects our own internal commitment

to diversity. Our supplier diversity program focuses on building

relationships with businesses owned by minorities, women, military

and disabled veterans, and LGBT persons.

In 2015, we contracted with five new large minority-owned suppliers

that provided products and services such as laundry, baked goods,

landscaping, and interior design, which helped to increase our

Avendra-contracted supplier diversity spend in the U.S. by 11 percent,

surpassing our year-over-year goal of 3 percent.

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